Caterpillar and Phelps Dodge at All-Time Highs

Caterpillar (CAT) is benefiting from the world-wide construction and mining boom. The heavy equipment maker is on a prolonged price upside and continues to make all-time highs.

Not surprisingly the stock prices of CAT and Phelps Dodge (PD), the large copper producer, are highly correlated - as the demand for copper increases the need for heavy equipment to mine it increases. So CAT becomes a play on base metal prices.

Posted May 22, 2006.